D&L surpasses profit target

MANILA, Philippines - D&L Industries Inc., a manufacturer of customized food ingredients and specialty products, has surpassed its profit target last year after posting a record year in 2014.

D&L Industries said its net income rose 27 percent to P2.03 billion from P1.60 billion last year, exceeding the company’s 2014 growth target of between 22 to 26 percent.

Net income in the fourth quarter alone jumped 37 percent year-on-year to P557 million.

Company revenues also soared 39 percent year-on-year to P20.52 billion from P14.80 billion behind double-digit volume growth in its food ingredients, oleochemicals and other specialty chemicals businesses.

The food ingredient business contributed bulk of the company’s revenues last year.

 “In terms of net income and revenues, it’s the highest we’ve had. It’s the first time for us to hit P2 billion in net income and P20 billion in revenues,” D&L Industries executive vice president and chief finance officer Alvin D. Lao said.

D&L Industries said last year’s acquisition of the remaining 65 percent of Chemrez Technologies that the company did not own helped boost its top and bottom lines.

In 2014, the firm said the Chemrez acquisition added 27 percent to its top line and 16 percent to its net income, reflecting the significant value created by the transaction.

 “Lower crude oil price is a tailwind that is expected to favor D&L’s end markets, in particular food ingredients. With the full ownership of Chemrez, D&L is in a better position than ever to capture these opportunities going into 2015,” the company said.

Chemrez was consolidated beginning Oct. 7, 2014 after D&L Industries completed the acquisition of 65 percent of its outstanding shares through a public offer.